bolstering our power grid and bringing it into the 21st century. there are many lessons to learn from this tragedy of this superstorm. but i hope one of them is that america has a hard conversation on what we can afford and what we can't afford. and what we should be spending our money on and where we need to scale back. i'm sure that conversation will take place. that will do it for "closing bell." thank you for joining us tonight. follow me on twitter and google-plus. @maria bartiromo. everybody here at "closing bell" wishes you safety as the cleanup tonights. stay with cnbc. fast money" begins right now. welcome to a special edition of "fast money." tonight we're digging into the fallout from hurricane sandy. how much will this historic storm cost? how will the markets react tomorrow after the biggest disruption to trading since 1888? we'll get insight on the power outage from the ceo of exlon and ceo of jet blue.

trading may be halted for two days but there's still big news to digest in stocks like apple and facebook. plus a fwig deal for disney this evening. first let's get the latest headlines from courtney reagan. >> taunk you, melissa. the human death toll from megastorm sandy stands at 39. a number we've watched grow all day and sadly expect to keep on climbing. financially sandy will end up costing $20 billion in property damage and between $10 billion and $30 billion more in lost business making it one of the costliest natural disasters on record in the u.s. according to ihs global insight. more than 8.5 million people across the east are still without power right now and utility companies urge customers to be patient as it could be some time before power is restored. president obama will tour new jersey tomorrow with governor chris christie. earlier today the president said the government will do everything it can do get resources to local governments. and new images are emerging from the destruction. check out this shot of a parking

lot full of cabs in hoboken, new jersey, it is literally under water. and this photo taken from union beach, new jersey. pretty harrowing stuff. and finally, some good news for air travel. new york's jfk airport is set to open tomorrow in both washington and philadelphia airports are back operating today after more than 18,000 flights were canceled as a result of superstorm sandy. melissa? >> courtney, thanks for that rundown. our very own scott cone has been braving the storm from manhattan's battery park. he joins us with the latest on how lower manhattan including the financial district has faired in sandy's wake. scott? >> reporter: melissa, if you consider the fact that the stock exchanges are going to re-open as well as the kmcommodity exchange, the new york merc in the financial district i suppose it faired pretty well considering they'll get back up and running after two days down after such a historic storm. if you look behind me, new york harbor is looking a whole lot

more like its normal self. the waters have calmed down quite a bit. the problem is that before they did, a lot of this harbor was left in places where it doesn't belong like the brooklyn battery tunnel. 6,000 feet long connecting manhattan and brooklyn. it flooded entirely end to end and remains flooded tonight. just one of the many transportation arteries still shut down. the new york city subway system has suffered its worst disaster in its 108-year history. the south street station not far from here we're told by officials has water all the way up to the ceiling and it's going to take some time to get all of that water out of there as well as get everything repaired and operable again. the power grid also suffered from this. the big transformer explosion at the 14th street station on the lower east side was spectacular and as that happened, officials during the storm last night preemptively shut down power to much of the island of manhattan. everything essentially south of

36th street or around the neighborhood of the empire state building all the way down to where i am and much of that power, most if not all of that power is still out. so there is a long climb back for this financial district. at least they've gotten through it, but what you see behind me, all of this calm, belies what's going on in the city. melissa? >> all right. scott, thanks so much for that. of course, all these disruptions will make it very difficult for people to get downtown as stocks re-open for trading tomorrow. let's go to bob pisani with what we can expect tomorrow, the first trading session since last week, bob. >> it is. it's all systems go, what we're hearing today, melissa. trading will resume at the new york stock exchaenge and others tomorrow. i was told a short while ago it is, indeed, all systems two. >> we've had people on site throughout the evening and got the report early this morning that there was no -- there was no issue with the building. it had not been compromised.

what we heard that, we've been operating under the assumption we would be open for normal business tomorrow. >> the trading floor, of course, will be opened for the full day. they spent the morning with brokerage firms testing to make sure all the systems could connect to the nyse. he also said the decisions were made in concert with the other exchanges. nasdaq, direct edge. they all said they would open as usual. there's been pressure on all the changes to open tomorrow since it's the last day of the trading month and many report their gains and losses on a monthly basis. and some mutual funds tomorrow is the final day of the year. the most important issue today was the connectivity issue. you want to get data in and out and connect to all of their customers some of whom may be operating from contingency sites, themselveses. the brokerage officials may or may not be working from the sites they normally work out. >> especially with all the disruptions as scott outlined earlier. bob, thanks so much for that. what would investors ex% when the opening bell rings tomorrow?

here's where we left off on friday. the nasdaq coming off its third consecutive down week. the s&p a00 and dow coming off their worst. david lutz, head of etf trading joins us on the fast line. in terms of tomorrow, what should we expect at 9:30 a.m. eastern time? >> as you guys have alluded to, it's going to be a challenge for a lot of workers whether they're in downtown manhattan or whether in the jersey or the connecticut area. it's getting to their desk tomorrow. the trade, given the fact metra north is going to be down, amtrak is still down, jersey transit is going to be having some problems. we are going to have lighter volumes than normal probably for a month's end. you know what, what's probably good for the market is this event happened over the weekend and as you know, it was really well telegraphed. the press was calling this a frankenstorm this time last week. i think a lot of people were

prepared as far as balancing their books out and getting things relatively straight comes into this weekend. now, nobody was anticipating the markets being closed for a couple of days but you know what, on monday we had bad headlines coming out of the iuor iuoryea eurozone. today we had good numbers off the eurozone and italy a decent bond auction. the volatility aspect of it could be pretty muted. we're going to see lighter volumes even though it is month's end and window dressing for a lot of funds. what will be interesting to watch is the nasdaq futures. i mean, they were underperforming pretty good this morning when all of the apple headlines that were going out as far as management shakeup. that's going to be a focus. next thing we have to stare at is the jobs report and moving into the election next week. >> look at the month to date performance of the nasdaq, it's down 4%, the worst of the three mayjor averages. will it be the winners and

loselose ers that see the most action and will the action happen in the first hour or two of trading then taper off? >> how i think it's going to be is a building crescendo as far as trading is concerned tomorrow as more and more people man their desk, we make sure there are no real connectivity issues. portfolio managers get to sit in their seats and adjust what's going on and the window dressing aspect of making sure the winners are on your books and losers are off your books going into the month and as bob said, the year-end for a lot of mutual funds. i think that's probably going to build throughout the session. so i think a lot of activity is probably going to be weighted toward the middle to the back end of the day depending on what's going on. you know, it's going to be a little difficult to tell and i do tend to think, you know, trading is going to be lighter because people are still going to try to figure out, how can i get to my desk? >> thanks for giving us the lowdown. we appreciate it. >> thanks for having me. >> david lutz. let's bring in our traders, mike, jim, jon najarian standing by. you'retraders. when do you step in tomorrow and

make your first trade? >> right with the opening prints. i think. i was watching apple trading in frankford, melissa. everybody was ringing their hands about how bad this could possibly be for apple. the way i look at it the stock was either up or down 50 cents. 50 cents after all that shakeup. after people sort of digested what was happening. being forced out. ascending to the number two spot really at apple. i think there will be great opportunities. i afree with david lutz. volumes will be lighter than normal expiration but there's a lot of pent up trading in ford, in apple. in the likes of facebook and so forth. i do think we'll actually see a fairly robust day. i don't think it will be like the day after thanks giing sort of volume. i think it will be more or less like a normal day, not a normal month end. >> michael, the other thing happening this week, we lost a couple of days in trading. for people who might have weekly options an apple is a very

popular weekly option. you have a limited amount of time for those trades to work out and manage them. >> that's a very good point. most of the people tradiing thoe weekly options aren't going to take advantage of them until the end of the week. if we delayed the opening much further those people would have been ringing their hands a great deal thinking they wouldn't have had an opportunity to trade them. people making bets on that stock from one' week to the next. if you use up half the week already you've used up half your option. i agree with jon, though. i think form we might see a fairly normal volume day. bear in mind volume this month in october dropped off after seeing a spike in september. there's going to be a little bit of pent up trading demand, the two days when we weren't in action and going to be people that are going to be slow out of the gate. i think those two things are likely to offset one another and not expecting off the charts volatility either. >> tim, how are you stetting up? >> i think the story about the weekly options is interesting especially for people who warrant playing apple but playing sandy.

a lot of people used weekly options. we layered in eem puts, iwms which are effective for us, knowing there could be volatility related to market disruptions. you open up on wednesday, you buy weeklies, you've had major time decay there. at the end of the day maybe that still worked for you, gave you peace of mind into an event. in terms of tomorrow, we are global investors and our markets have been open. look at what's going on for the last couple days, there's been some reasonably constructive stuff out of europe in terms of the headlines, in terms of the austerity that greece is looking like they may push through. more importantly on the earnings side. deutsche bank numbers were fantastic. we have a lot of news out of china. a lot of data. the world goes on. there's no question volumes were down, we did go into this period with everybody feeling as if the u.s. needed to take a breath. here we are. >> we'll hit all those trades later in the show. meantime, superstorm sandy leaving millions without power.

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hurricane sandy leaving 8.5 million people without power on the east coast. let's get an update on one company's restoration efforts. joining us on the fast line, chris crane, ceo of exelon, the parent company of pico, servicing pennsylvania and bge servicing central maryland. great to have you with us. >> thanks for having me. >> give us a status report as to how many people are still without power right now. >> in our two business -- our two service areas, pico and com ed we had at the peak -- pico and bge, we had 1.1 million customers off. we have restored power to more than 360,000 of those and will

continue to work. we've got about 7,500 employees and contractors, mutual assistance folks on the system now working it and will continue over the next couple days to get this restored. >> when do you expect full power to be back? >> we're going to work on that estimate. we're still -- the peco area, the philadelphia area was hit very hard. we're still in the damage assessment phase. it could take a week or a little bit longer. but we won't know that for the next two days. there's equipment on its way and more resources to help. >> right. and i do want to get an update from you as well on the oyster creek nuclear plant, one of the oldest in the countries. there was problem with the water intake. running on a backup generator. no threat to public safety your company has made clear. what are you anticipating here in terms of when things get back to normal? will you have to spend more money on upgrading the systems

there? >> no, oyster creek was shut down for a scheduled maintenance outage. all the preparations that were taken, it's got a very robust design already. so the issue with the storm surge caused us to announce an alert within a parameter of that where we would lose our pumps off of the intake. we safely transferred to power from our backup diesel generators until this morning and now we're back on the system and the employees are back doing the maintenance refurbishment work and will be starting it up on its previous scheduled time. so no real issues at oyster creek, but there's a lot of precautions we're taking at all our nuclear plants when severe weather comes in. >> companies like yours are first and foremost concerned about public safety, workers safety, as well as restoration of power at the same time for investors, particularly

tomorrow, when the stock markets re-open once again from last week. the concern here will be on exel exelon's conference call come earning season. are we going to hear about hurricane sandy as the impact? what can you tell us on that? >> yeah, sure, we're going to talk about it. we moved our earnings call to thursday, and it was scheduled tomorrow, but we moved it one day just to give people time to get back in their offices. so we'll be discussing the impact of sandy from the financial aspect. need another day to get that number in a tighter range. we believe it will be north of $100 million which would be in line with other severe storms that we have had. and, but we don't know the split between what's expense and what's capital yet, but we're working on that. >> all right. chris, thanks a lot for the update. we appreciate it. look forward to the earnings release later this week. chris crane, ceo of exelon. tim seymour, in terms of storm-related trades and the utilities, of course these are

major impacts for companies not just like exelon but, of course, con ed, et cetera. is there a trade here? in your view? >> i think the trade with exelon is definitely one where people love the dividend. it's almost why you play in the stock because you really i think for all of these utility plays it's about waiting for a power recovery. so exelon saying they expect kind of $3, $5 per megawatt recovery the next couple years and will allow them to be the legacy player. i don't think this event as a one off is to go in and buy these numbers. if anything, guys were anticipating this trade going into san day. no, i don't like it. i like exelon and the dividend play. >> the dividend to be specific, 5.9%. the bottom line for investors is that the impact on the storm in line with other storms out there, this straight from the ceo, again, the earnings will be out on thursday. meantime, all the news today not about sandy. a major deal disney announced it's adding "star wars" and "indiana jones" to its library.

acquiring lucas jones, worth $4 billion. our julia boorstin at disney headquarters exculusively with the latest. >> reporter: $4.05 billion. disney is acquiring lucas film, half cash and half stock. in the acquisition they're acquiring the rights to the "star wars" franchise which goesed over $4.4 being worldwide as well as special effects studio industrial light and magic and sky walker sound. disney says it plans to release "star wars" episode seven in 2015. that's the same year it says the acquisition will become accretive to disney's bottom line saying it plans to release more films in the star wars franchise every two to three years. >> this was also a very unique opportunity. when you look at the world of entertainment, there's almost nothing like this. this is one of the most iconic, one of the most successful, one of the highest quality entertainment brands that exists in the world. and we thought it was a

wonderful opportunity for this company to bring it in to disney and continue the great legacy that george created over 35 years ago. >> reporter: bob iger told me lucas films consumer products licensing is on par when it bought a studio for $4 billion back in 2009, saying this year licensing revenue would be over $215 million. a number that disney is sure to grow when it releases more films. george lucas told me he specifically wanted to sell to disney as he moves into semiretirement, he'll continue to work with the company, as well as disney's success and its acquisition for pixar which it bought in 2006 for $7.4 billion. george lucas was one of the founders of pixar who has a long relationship working with iger and working disney. back over to you. >> thank you so much, julia boorstin. the licensing revenues are huge. if i buy a princess lea costume for halloween --

>> and you will. >> disney gets a piece of that. if you take a look at the kinds of acquisitions disney has made in the past zemseven years, pix and now lucas films. >> it's a big acquisition and of course, rides. let's not forget about the theme park side of it. although julia said george lucas had that relationship, i'm going to correct her even though i love her to death. that was steven jobs' relationship that sold to iger. steven jobs built it up to that monster that it was, "monsters inc" and so forth and sold it off to disney. >> yeah. , where do you go on disney here? some people will take a look at the u.s. business and say, you know what, theme parks areprovi biz. where do you stand? >> i like to fade the big nation building of acquisitions. in disney's case, they deserve

credit. they turn these into accretive acquisitions. their merchandising in particular. i'm sure they're going to grow that tremendously. knowing that in particular because i have a 3-year-old and a ar-old. and they just do a remarkable job of merchandising and i can see that as being, you know, quite beneficial. this is also a pretty significant increase in the side of their motion picture business which did a little over $6 billion. this is really very positive for them. >> i had a friend in high school when he had a few too many beers he turned into chubaca. that's for another episode. i think it shows the stock is expensive though i think this is a fantastic purchase. this is about theme parks and the carryover. i think the stock is fair priced here. coming up next, earnings report today from one of america's most iconic brands. we'll catch you up on that story right after this break. plus hurricane sandy

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fake a look at some of these pictures sent in by "fast money" trader pete najarian, near his home on his property in connecticut. you can really see how sandy has wreaked havoc. residents there, lots of power outages across that area. jon, i don't know if you talked to pete, if he's okay. he gets his power, out, though if it sneezes up there basically. >> yeah. he's off the grid all the time, melissa. you know that. >> in more ways than one. >> in more ways than one. even though when you have a self-sufficient house like that when you don't have cable, can't have internet, you can't have television, so, yeah, he has power but he can sit there and watch the fridge i guess. not a lot you can do without the internet and cable. >> he was probably using the trees as tackling dummies. >> he's lifting them. bench pressing. moving on here. despite market closures from superstorm sandy, some companies went ahead and actually reported earnings. ford announcing record third quarter automotive profit

margins this morning. cnbc's phil lebeau has been tracking this story, joins us from atlanta. north america, phil, was the real bright spot here. >> reporter: yeah, that's the real engine behind the positive third quarter numbers. very positive numbers we should say from ford. take a look at earnings coming at 40 cent a share, 10 cents better than the street was expecting. late last week they said they would do better than expected rp revenue, a hair below what the street was expecting. north america drove it for ford. they earn $2.3 billion in north america last quarter. profit margin, listen to this, an all-time record high, any quarter at any time in ford's history, 12% in north america. what was driving that 12% profit margin in north america? mainly volume and pricing. both of those improved substantially, but also they got a $400 million gain from hedging because they have the commodities market working in their favor. the bottom line, things are moving very well in ford north america, but when you look at europe as we talked about last

week with the restructuring the company now saying it could lose up to $3 billion in europe over the next couple of years. so that's the story with ford, and melissa, quickly want to bring you up to date in terms of i'm hearing regarding the airports. people in the airline industry, people in new york, hearing jfk and laguardia, there is little confidence they're going to be able to open those airports by tomorrow night. certain certainly laguardia is in much worse shape an jfk. some of the problems we're hearing about, a fuel pump flooded at laguardia, the lighting system was damaged, that's the system that was out in the water. it was hit by either a barge or some kind of boat. that damage, those are the lights that are used by pilots and there's inclement weather. there's a number of things wrong at both airports. the bottom line is what we're hearing, we're going to see more cancelations when it comes to at least jfk and laguardia. >> thanks. we'll ask dave barger about that.

quickly, though, phil, i'm wondering if ford gave any indication on impact from the storm on u.s. vehicle sales. general motors came out and said something to that effect although didn't give specific estimates as to impact. >> reporter: right. nobody's coming out with estimates in terms of how much it will hurt sales. there's no doubt that when the october numbers come out on thursday almost all the automakers are going to be a little bit below what was previously expected. i don't think the sales rate for the industry will hit $15 million. you're taking out a good chunk of the u.s. for the last three days of the month. ford does believe they're going to be able to make up sales over the next couple months. you know how this goes, guys. you lose sales in the inclement weather events or extreme weather events, you hope to make them up in the months to come. it's hard to tell if you always do. >> phil, thanks for that. with the earnings news out of ford, there will likely be pent up energy behind that name. what's the best move tomorrow on this pent up ford trade? mike, where do you go here on the autos? >> yeah, you know, other than what's going on in europe, i

rather like ford. i think they have a very good array of new cars coming out. i think that's a positive. consumers obviously demonstrated this high fleet age has gotten high enough and they've been buying cars though businesses haven't been investing as aggressively. the consumer seems to be supporting at least domestic sales and have a good offering. one thing i would say, though, at some point you're going to see the incongruity converge. you can't have where consumers remain fairly prop ul gaited for any amount of time. the stock is down 30% from its highs earlier this year. >> all right. over 15,000 flights canceled today due to hurricane sanity. for more on hurricane sandy's impact on the airline industry, dave barger, ceo of jet blue. he joins us on the fast line. jet blue canceled 75% of scheduled flights today. dave, always great to speak with you. >> >> great to be on "fast money." >> give us an update on the new

york city area airports. we were just showing striking images of laguardia essentially under water. what's the timeframe here for re-opening? >> yeah, sure. i think phil lebeau is actually correct on that, although i tell you, we really have to hand it to the port authority because some very good traction is being made. we're planning right now is that kennedy airport may even start accepting some special movements of aircraft tonight. those that are moving in, say, crews repositioning. certainly tomorrow, according to the port authority, and then it looks like newark has power to the airport and so we're waiting for an announcement over at newark. maybe with operations sometime over the course of the afternoon. laguardia is the one that really was impacted with the storm surge. i mean, the entire air side was covered. but we're hearing that even laguardia airport looks like thursday, thursday morning could be a two and we'll wait to hear from the port shortly. >> is it possible for you to ramp up to a full flying schedule without laguardia? can you redirect those flights

and redirect those customers? >> yeah, we sure can. in fact, in our case because jfk is our home base we can move our entire laguardia operation over to jfk and accommodate those customers. again, we have a beautiful facility in terminal 5, our home base at jfk. we could do that if we had to. right now we're thinking probably laguardia is going to be open for business on thursday. what we're planning is valely just a slowly, a spooling up over the course of tomorrow, thursday, and then into friday, melis melissa. really at the end of the day, i mean, sandy was across our route system. as you mentioned 75% of our flying canceled. we're going to be slow but sure but predictable to the customers and certainly our crew members as well. >> a challenge could be also that the mta is completely shut down and could be completely shut down for days. how do you get your team members, what you call the crew members, to work where they need to be? >> this is where, again, i tell you, hats off. when you think about hurricane irene and then, of course, the leadership of mayor bloomberg, i

tell you, the commissioner over at mta working with pat foy, sue barrett, the port authority, the communication has been outstanding. so even if we don't have the subway system, we've got buses. we've got backup systems in place to move our crew members out to the airport. and this is what's so good about it. the communication. it's predictable. and there's waters in the tunnels. subways aren't going to be running. we'll go to plan "b." we'll certainly work around that. this is why we're phases in our operation. >> what's the bottom line impact? stack this up versus, say, an irene. >> bottom line right now, it's going to take a week for everything to settle in. right now we're looking at $15 million to $20 million worth of revenue impact over the course of the customers right now that are displaced. some of those will be reprotected. many of those actually will be. at the end of the day, when you look at, we're an airline that burns 1.5 million gallons of fuel a day.

we're not burning that over the course of the last couple days and tomorrow as well. the final numbers not going to be as high as that. it's going to be significant nonetheless. >> dave, thanks for coming to phone. we appreciate it. >> thank you. >> ceo of jet blue, dave barger. we get you ready for the trades that have been pent up during the market close. facebook, that's next. we'll have the latest on the fallout from hurricane sandy. get the read of retail and restaurants with the coo at papa johns right after this. [ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account.

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cleanup continues in the aftermath of hurricane sandy. let's get the very latest headlines from courtney reagan. >> thank you very much, melissa. we want to bring you new video released by the mta at this hour showing the massive devastation to the new york subway system. mass transit in new york city is still shut down for obvious reasons. mayor bloomberg not giving a timeline for its restoration, either. washington, d.c.'s bus service. meanwhile, we're seeing quite a few companies pledging their support.

gm said they will donate 50 chevy trucks to the red cross for use in recovery efforts. 3 m committed cleaning products, duct tape to the red cross. goldman sachs is setting up charging stations in conjunction with conrad, new york, and providi providing bottled water for residents. walmart is using its network to keep the word out about shelters by keeping website and twitter a counts updated with the latest information. >> thank you very much, courtney reagan. restaurant in sandy's path facing head winds following storm damage. pizza maker papa johns has 600 locations near the storm. responsible for leading the company's global operations. joins us now from louisville, kentucky. great to have you with us. >> thank, melissa, great to be here. >> what sort of disruptions in terms of delivery and distribution are you seeing right now? >> well, as you said, we have

600 stores that were in the path of the storm. and last night we actually had between yesterday and last night 200 stores that were closed. and as of late this afternoon we still have around 100 that are still yet to be open. but we do hope those stores will be open here by the balance of the week. >> what are the greatest challenges at this point from your standpoint? is it the roads? getting power back up to the stores that they would actually want to buy some of the raw materials you distribute? >> well, first, i'd say that our real focus right now and actually through the storm was the safety of our team members. we have about 15,000 team members that were impacted. papa john's employees in some way, shape or form through the storm. so up ahead of the storm we were focused on that and certainly the communities that our team members live in, you know, the customers, that's where our real concern and, you know, our hearts go out to those folks. a catastrophe like this certainly this is something that we have not seen before. unfortunately, we have some

experience in working through disasters such as katrina, some of the tornadoes that we had in alabama, southern indiana, and missouri. so our team, our restaurant operations team, as well as our commissary teams are very pro active and there's a whole lot of planning that took place ahead of the storm and then obviously, you know, you still don't know what quite to expect of the storm, and the focus ends up being prioritizing how we can get to restaurants from a road closure standpoint as well as the power grid. so those are the two primary things that we're working through. >> how pressing is it to get the goods to the stores? i mean, i'm asking this because a lot of analysts out there are saying this sort of storm will provide a lift to the delivery food companies like a domino's and papa john's. what are you seeing so far? >> well, fact is we own our own commissary system. so that coordination is probably a little bit easier for us and

frankly we've got a pretty firm grasp on that and we're very proactive. so we're feeling pretty positive about getting the rest of these stores opened back up. we did have maybe a half a dozen that were significantly impacted that may take a little bit longer. you probably heard object the fire in queens, new york, actually, took out one of our stores. >> all right. tony, thanks for the update. appreciate your time. >> thank you. thanks for having me. >> tony thompson, pg food service coo. dr. j., the trade, do you like them and to you think they'll see a lift? because people are going to dial up for pizza because maybe their stoves aren't working or it's difficult for them to get to the store. >> there might be a lot more folks staying at home doing repairs and all the rest, melissa. i don't know that you get a lift on these two stocks tomorrow but i think over the next several weeks they should see an increase in business. so from that standpoint, i like both of your trades. >> we should note pzza the earnings were rescheduled

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we are awaiting comments on hurricane sandy from new york city mayor mike bloomberg. we'll bring you those comments as soon as they begin. major issues in new york city from power outages from 3th street and south and restoration of mta or subway service. hurricane sandy one of a number of major storms that hit the northeast recently. take a listen to what new york governor andrew cuomo and former governor christine todd whitman had to say about the weather pattern. >> anyone who says there's not a dramatic change in weather patterns, i think is denying reality. >> clearly, when we see two

100-year storms within 14 months of ooeach other we know things e changing. we have to start to address that. >> hmm. so if you believe there is an actual change in the weather pattern, maybe consumers and businesses, traders, will believe they have to be better prepared. that's when you take a look at the names like generac, maker of generators and those who make the engines that goes into the generators. mike, do you believe in that sort of trade? >> i can see where people are coming from on this, but, you know, if you take a look at actually the history, it hasn't worked out so hot. stratton, which makes among other things snow throwers, too, if you think there's less snow, that's going to be a downside for them. this is not a company that's seen positive revenue growth year on year. we had a big hurricane last year and yet looking at another year where we're going to see year on year revenue decline. that said, it's probably fairly valued trading 7 1/2 times trailing 12 month. enterprise value basis. if you're expecting a lot of

growth because you think people are going to run out and buy these things ahead of upcoming hurricanes you're likely to be disappointed. >> it may not be ahead of the hurricanes, tim. you're a consumer and living without power now maybe for the second time in about a year. you may be thinking i have to buy a generator for my house. >> i'm definitely not going to take a chain saw into my apartment, but i do think there are definitely people reassessing this whole thing. i agree with mike, however. the cyclicality of this, stratton over the last five years has had an opportunity to reap benefit. i don't think this changed in the last year. soo i'm sorry. the great thing about the company it's a decent dividend yield. i don't think they're life changing. i'd like to have a generator in my apartment building. i think people are reassessing that. what's happening to the winters? it's a great point. i don't know that it doesn't balance itself out. >> all right. by the way, generac reports earnings tomorrow morning. the ceo on "fast money" tomorrow

night. current damage estimates hitting as high as $20 billion. $5 billion to $10 billion in insured losses. joining us on the fast line, chief adviser of deloitte insurance group. great to have you with us, howard. >>melissa. >> looking at insured losses, the way the insurance industry can benefit from a shareholder standpoint, from a profit standpoint is if the losses are big enough so they can push through rate increases. are we there yet? >> i don't know that we are. the insurance industry has been suffering through a soft market for quite some time. the prices have been very low. there's been so much competition. this may lead to a hardening of the market. it's not definite. to put it in perspective, you said accurately the damages go up to possibly as high as $20 billion. that's a significant number. insured losses probably $5 billion to $10 billion depending on where the final estimates come out. just to put it into context,

that's 2% or less than the total property casualty insurance industries capital in the united states which is more than $500 billion. the industry is extremely well capitalized and is very capable of absorbing these losses. >> we're taking a look, showing our viewers some of the insurers who are most exposed to the damages from sandy. at what point do you think we'll get a good read on what the exposure actually is? some of these obviously are publicly traded companies. >> well, i think that as the estimates get more refined, that's going to take some time obviously. a lot of the coverage, a lot of the damages here, bear in mind in terms of personal lines, will not be covered because if it's flood damage, flood is not covered under the standard homeowners policy. so wind damage will be covered. but i think that we're looking in terms of, to put it in context for the entire industry, probably an earnings event that we'll see hit in the fourth quarter but not much more than that. again, the industry is very well

capitalized and they can easily absorb these losses. >> howard, thanks so much. howard mills of deloitte. dr. j., when it comes to the insurers, financials broadly which includes the insurers as a sector on the s&p 500, the top performing sector for the month of october, is there room for the insurers do you think? >> i think there is. and, in fact, the fact that damage wasn't nearly as bad as predicted, melissa, that's good for a firm like allstate which is the number one of those publicly traded companies. coming up next we continue to survey the damage in sandy's wake. another update from one of our reporters on the field. plus tim seymour goes global with another pent up trade he just can't wait to make tomorrow. stay tuned.

to new york city mayor mike bloomberg speaking from oem headquarters. >> we saw the rockaways, lower manhattan, south shore of staten island, coney beach and provided a clear look at how extensive the damage from last night's storm was. it also showed the progress we're already making in our recovery. on the rockaway peninsula i walked through the part of

breezy point that was absolutely devastated by the wind-fed fast-moving fires that took out more than 80 homes last night. to describe it is looking like pictures we've seen of the end of world war ii is not overstating it. the area was completely leveled. chimneys and foundations were all that was left of many of these homes. i actually ran into congressman bob turner and other breezy point homeowners and talked with them. it's very sad they lost their homes, but the good news is, there were no fatalities thank god. unfortunately, all together so far in the storm -- >> of course, we'll continue to monitor the comments from mayor mike bloomberg of new york city. let's go to brian shackman doing some of his own business assessment in freeport, new york. >> reporter: this is one of the hardest hit areas in all of new york, melissa. thank you so much. the building behind me used to be a new restaurant and bar. it's absolutely totaled. i talked to owner. they also lost their home as

well. we decided to walk around town here to get a feel for ourselves and show it to you. it looks like a movie set. it's the only other way i could explain what we saw. both on lawns, both on roads, both on boats. both on sidewalks. i actually went in and visited with one family in particular. they've been here for 34 years. they had nothing since gloria and irene, now two times in nine years. there are customers without power on long island. it's an economic story and property story because people are losing fishing business. back to you. >> the markets have been closed for two days. they re-open for tomorrow. here's something i haven't been able to say for a while. we have or first move for tomorrow right after this. up. a short word that's a tall order.

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> time for the final trade. >> there's pent up activity coming your way. >> trade is no hard landing in china. keep the china trade on. >> mike, caterpillar. the worst is over there. >> i'm melissa lee. thanks so much for watching. see you tro